MANILA – Shares in PepsiCo's bottler in the Philippines closed below their initial public offering price yesterday amid a volatile domestic and global markets, dealers said.

Shares of Pepsi-Cola Products Philippines Inc (PCPPI) opened at P3.30 (8.14 cents) but closed at P2.85 compared to the IPO price of P3.50.

The company had lowered its IPO price to between P3.50 and P4.30 a share from its initial price of P6.40 to attract investors amid volatile equities market.

Total proceeds are expected to reach P4.0 billion, of which P1.2 billion will be used to boost PCPPI's production capacity and expand distribution of its carbonated and non-carbonated drinks.

"With the market still volatile, investors are going into reliable oversold blue chips. They prefer to buy stronger issues," said Gomer Tan, an analyst at Regina Capital Development Corp.

PCPPI officials and its IPO underwriters downplayed the stock's performance.

"You have to look at it in the context of what has happened in the global markets," said Lauro Baja, managing director for UBS in the Philippines . UBS was the international underwriter for the IPO.

The IPO was 1.3 times oversubscribed in the international market, with about 69 percent of the offer taken up by Asian investors, 20 percent by US investors and 11 percent by European investors, UBS said.

PCPPI offered 1.14 billion shares, or about 31 percent of its enlarged capital. Around 70 percent of the IPO shares were offered to foreign investors and the rest were taken up in the domestic offering.*AFP

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